03RS HB536


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HB 536/LM/CI (BR 196) - T. Burch, J. Jenkins, P. Bather, S. Brinkman, De. Butler, J. Draud, J. Haydon

     AN ACT relating to electronic gaming at racetracks as a part of the state lottery.
     Establish KRS Chapter 230A to authorize electronic gaming, to be supervised by the Kentucky Lottery Corporation; make findings regarding gaming as a part of the state lottery; add numerous definitions; provide that electronic gaming shall be a part of the state lottery; clarify that authority of the Racing Commission shall not be diminished; appoint eight-member advisory board from the Lottery Corporation and the Racing Commission to oversee electronic gaming at track; set duties of the Lottery Corporation regarding oversight and enforcement of the chapter; provide that the Lottery Corporation shall investigate qualifications of applicants and supervise licensing of applicants; authorize the Lottery Corporation to issue emergency orders in extreme circumstances, and provide for hearing after issuance of emergency order; authorize the Lottery Corporation to promulgate administrative regulations consistent with this chapter; provide that the Lottery Corporation shall have all powers necessary to implement the provisions of this chapter; prohibit gaming manufacturers and distributors from placing equipment in this state unless approved by the Lottery Corporation; require that all equipment be tested and approved by the Lottery Corporation before placement in this state; provide exemption from certain local zoning requirements; prohibit a racetrack from engaging in electronic gaming if an owner sells property, goods or services relating to electronic gaming to eligible associations or the Lottery Corporation; set forth application and licensing information requirements, including criminal background checks; set qualifications and limitations on licenses issued by the Lottery Corporation; require that license holders ensure that there will be no net reduction in racing days in order to receive a license to conduct electronic gaming; set conditions for suspension or revocation of electronic gaming device (EGD) operator licenses under this chapter; prohibit the transfer of licenses without the approval of the Lottery Corporation; require that gaming devices only be acquired from licensed manufacturers or distributors; provide training of all licensees and personnel, and set requirements for training components; authorize EGD operators to determine the number of machines and hours of operation; allow the Lottery Corporation and the Racing Commission access to all records of the EGD operator; require EGD operator to file change of officers or directors and give the Lottery Corporation 30 days to approve; require EGD operator to provide tax returns to the Lottery Corporation; set forth stringent internal controls to be adopted by EGD operators; provide for licensing of EGD employees by both the Lottery Corporation and the Racing Commission, but require that parties seek to adopt a single employee license under the control of the Racing Commission; authorize a fee for the single license; prohibit EGD manufacturers from operating unless licensed by the Lottery Corporation; set criteria to be followed by EGD operators and manufacturers in reporting violations of law and conducting gaming activities; prohibit persons under 21 from playing EGDs or being employed as an EGD employee; provide procedure for resolution of disputes between the Lottery Corporation and the Racing Commission; provide that the transport of EGD equipment into the state shall not be a violation of federal law; set out criminal penalties for violations of laws regarding electronic gaming; provide that certain nonsupervisory employees of EGD operators be authorized to continue collective bargaining agreements; amend KRS 154A.010 to add definition of lottery ticket; amend KRS 154A.030 to allow certain meetings to be closed in certain circumstances pertaining to an applicant or license holder under KRS Chapter 230A; amend KRS 154A.040 to exempt certain records of the Lottery Corporation from those that are deemed open records and subject to public inspection; amend KRS 154A.050, 154A.060, 154A.063, 154A.070, 154A.080, 154A.090, 154A.110, 154A.130, 154A.420, 154A.650 to conform to KRS Chapter 230A; amend KRS 230.260 to clarify that the Racing Commission shall have all powers needed to enforce the provisions of this Act and that the Racing Commission can charge a fee for all licenses issued, including those under KRS Chapter 230A; amend KRS 230.310 to provide for EGD employee license by the Racing Commission; amend KRS 230.377 and 230.3771 to include interstate and intertrack wagering on quarter horse races; amend KRS 230.378 to set out the commission splits on quarter horse races; amend KRS 243.500, 243.505, 525.090, 528.010, and 528.100 to include references to KRS Chapter 230A; provide that upon the effective date of this Act various state agencies, including the Lottery Corporation, the Racing Commission, and the Department of Charitable Gaming shall meet and establish a comprehensive and unified approach for the education, prevention, and treatment of problem gambling, and provide a report and recommendations be presented at least 120 days before the next session of the General Assembly; include a severability clause; and provide that if any action is brought for declaratory or injunctive relief to challenge the constitutionality of this Act, certain rules shall apply.


     HFA (1, J. Gooch) - Amend to specify the necessity of local referendums by the local governing body, the voters of a city, or the voters in a county regarding a racetrack facility located within the same or the adjoining county as the facility of the eligible association approved by the Racing Commission as part of the place, track, or enclosure, before the facility may be termed a racetrack or a licensed racetrack.

     HFA (2/Title, P. Marcotte) - Make title amendment.

     HFA (3, P. Marcotte) - Delete provisions of bill; propose amendment to Section 226 to the Constitution of Kentucky to permit referendum on video lottery terminals at racetracks.

     HFA (4, L. Clark) - Amend to lower the threshold of personal ownership interest, from 15% to any ownership interest, to trigger the prohibition that no racetrack shall engage in electronic gaming nor shall any racetrack qualify to be licensed as an electronic gaming device operator if any person with any ownership interest in that racetrack sells property, goods, or services related to electronic gaming to eligible associations, to the Kentucky Lottery Corporation, or to electronic gaming device operators under this chapter.

     HFA (5, J. Gooch) - Authorize gaming at up to 3 facilities in first or second class city if city has convention center or hotel with 500 beds.

     HFA (6, J. Jenkins) - Amend to require electronic gaming device operators to require that laborers, workers, and mechanics employed on the construction of capital improvements for the installation and maintenance of electronic gaming devices be paid the prevailing wage; and to require these operators to give preference to contractors domiciled in Kentucky in awarding contracts for the construction of those capital improvements.

     Feb 18-introduced in House
     Feb 19-to Licensing and Occupations (H); posting waived
     Feb 21-reported favorably, 1st reading, to Calendar; floor amendment (1) filed
     Feb 24-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Tuesday, February 25, 2003; floor amendments (2-title) and (3) filed
     Feb 25-floor amendments (4) and (5) filed
     Feb 27-floor amendment (6) filed
     Feb 28-recommitted to Appropriations and Revenue (H)

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